Twitter Stock Analysis, Valuation (NYSE:TWTR)

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$44.71 $0.45 (1.02%) TWTR stock closing price Jul 17, 2018 (Closing)

Our Twitter analysis throws up more reasons to sell than buy the stock, because it has historically underperformed on nearly every financial or fundamental parameter based on which companies are normally evaluated. We have analyzed twitter on various parameters like Twitter revenue growth, profits, and valuation based on PE (See: Twitter PE ratio chart), PS ratios, Twitter's assets and many more. Twitter stock analysis compares it with fast growing Internet industry peers, but still finds it to be expensive and risky buy right now.

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Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Twitter Inc Stock Rating 2.8/5

Should you buy TWTR stock?

  • The company saw a significant growth in revenue with a 5 year CAGR of 46.7.
  • The operating cash flow looks good at 3.9787 times the net income.
  • The company has a good Free Cash Flow (FCF) margin of 22.8.

Should you sell TWTR stock?

  • Twitter's Net margins were poor at 0.6% in the last twelve months.
  • Twitter has a debt/equity ratio of 0.35, which is worse than the average in the Computer and Technology sector.
  • Trading at a PE ratio of 235.3, TWTR stock is overvalued in comparison to sector average multiple of 26.3.
  • The company is trading at a price to sales multiple of 13.1, which is overvalued in comparison to the Computer and Technology sector average multiple of 3.

Comments on this video and Twitter stock

Twitter has been a momentum stock as can be seen from Twitter stock price history, driven more by market sentiments and expectations of future growth and buyouts, rather than financial strength. Our Twitter share analysis indicates a very risky proposition with very high price to sales ratio and non-existent price to earnings ratio, as Twitter is yet to report any net profits. Our stock analysts find twitter stock to be a very risky proposition.